Gin and vodka are now the largest sector in the UK spirits market.
Vodka is the fastest growing category of major spirit drink in the UK. Over 75 per cent of UK gin and vodka now produced in Scotland. Prime example of relocation to Scotland to improve cost of output. Relocation paid by export earnings, not from returns from UK market.
Cumulative Burden of Taxation and Regulation
Historical duty discrimination against spirits compared to other alcohol drinks. Government standstill on spirits duty acknowledged this but only a step. Duty already at point of tax maximisation.
Other countries do not discriminate against their major indigenous industry.
Recommendations: Support for further standstill to reduce duty differential, Reduce net cost to industry of Climate Change Levy.
Exports and Trade Barriers
Annual exports of £200 million to more than 200 markets worldwide.
Exports up by 50 per cent compared to 1995.
Discriminatory taxation against gin and vodka particularly in Canada, China, Czech Republic, India, Mexico, New Zealand, Poland, Romania, Russia and Turkey.
Recommendation: Seek Government to apply pressure on Accession countries to remove barriers and import tariffs prior to joining EU.
The main objective Gin and Vodka Association is to represent, promote and protect the UK Gin and Vodka industry. The Association has 24 member companies. These range from large multinational companies (MNCs) in the FTSE 100—which include the biggest spirits companies in the world—to small members with less than 12 employees in the whole production process. The Association covers over 95 per cent of UK gin and vodka production, with our members accounting for 76 brands. Although members' sites stretch from Plymouth to Invergordon, a major relocation of facilities now means that some 75 per cent of UK gin and vodka is produced in Scotland.
Noting the Committee's responsibility for reserved issues, the active interest of Westminster in the affairs of the spirits industry remains crucial given that two of the major issues which impact on the industry, excise duty and international trade, continue to be the responsibility of the Westminster Parliament. The Gin and Vodka Association therefore welcomes the Committee's inquiry, and the opportunity to provide evidence to it.
Адрес в Великобритании:
Cross Keys House,
Salisbury, Wiltshire, SP11 0PZ